China's One Belt, One Road Initiative anchors in Myanmar

A trading port and Special Economic Zone are the latest projects to emerge in Myanmar as a part of China's Belt and Road Initiative.

Supplied: Asia Maritime Transparency Initiative

The Kyaukpyu Port and Special Economic Zone are the latest projects to emerge alongside the oil and gas pipelines in Myanmar as a part of China's Belt and Road Initiative.

Myanmar's role in China's One Belt One Road (OBOR) initiative project is centred on the port of Kyaukpyu from where twin gas and oil pipelines run across the country and to Kunming in China's Yunnan province.

At a glance:

Pipeline to act as an alternative trade route to Malacca Straits.

CITIC Group holds the majority stake of development at 70%.

$10 billion project - $7.3 billion Kyaukpyu port, $2.7 billion SEZ.

Port's remote location from Yangon has raised concerns over practicality.

Colliers International Myanmar has identified the strategic importance of this pipeline in that is acts as an alternative import route to the Malacca Strait into China.

The site of the port project has also been designated as a special economic zone (SEZ), where China's state-owned CITIC Group has the majority stakes in its development at 70%, but its key role as a production and connectivity hub requires new rail or upgraded road infrastructure.

Overall, Colliers believes the concrete implementation of OBOR projects has raised the stakes for China in Myanmar, translating into multi-level engagement, including infrastructure and industrial cooperation, support for the government's peace processes and, recently, crisis resolution efforts in some areas of the country.

According to Finance Asia, concerns are circling as the economic corridor will omit Yangon, Myanmar's commercial economic heart. The primary fear sparked by the port's location in a remote Rakhine state, away from Myanmar's main economic area. The article indicates in dire circumstances, that if the SEZ is unsuccessful the port will cease to be also.

However, Colliers expects the country to maintain a secure momentum in the coming years, on the back of further economic liberalisation and new prospects in the office, retail, hotel, serviced apartment, condominium and industrial segments of the real estate market.